B2B credit infrastructure fintech, FinBox on Monday announced fundraising of $15 million (approximately ₹115 crore) in a round led by A91 Partners. Companies like Aditya Birla Ventures, Flipkart Ventures, and existing investors Arali Ventures also participated in the round.
The company plans to utilise the proceeds for scaling its offerings and expand to South East Asia. FinBox also announced that it’ll be doubling its current workforce to power its expansion.
Rajat Deshpande, CEO, and co-founder of FinBox said, “The future of financial services lies in every company and brand providing a curated set of offerings to their own users in their own platforms and ecosystems. This not only improves trust but also the velocity of transactions and helps users get the financial products they want, wherever they want them. We enable that by allowing any company including fintechs, banks, and conglomerates to offer 100% digital products within a matter of days.”
Through its Embedded Finance Stack and data intelligence suite, FinBox is on track to facilitate the disbursement of more than ₹20,000 crore in credit by March 2023 through its ecosystem of more than 50 partners, including NBFCs, Banks, and FinTechs.
The CEO added that the goal at FinBox is to take the complexity out of financial services and make it easier to build and launch newer, more effective products without hard work.
Kaushik Anand, Partner, A91 Partners said, “Financial services are moving out of the physical premises into the palms of the users, this requires credit and underlying value chains to be reimagined and built from the ground up for a digital-first era. FinBox is the most prominent credit infrastructure player in the region and we back the team to lead this transformation. FinBox is well placed to become the leading infrastructure player for banking-as-a-service internationally too.”
Apart from its API stack, FinBox provides credit risk intelligence to more than 25 Banks, NBFCs, FinTechs, and credit marketplaces. Its alternate data product suite predicts and helps price credit risk and further drive collections and cross-sells to borrowers.
Anant Deshpande, Co-founder, and head of data products, FinBox said, “Our data products including our proprietary scores create an instant trust between lenders and millions of borrowers thus enabling us and our lender partners to create automated yet low-risk lending workflows for deeper financial inclusion.”
Anant added, “We realized early that responsible use of alternate data for underwriting can be a game-changer for lenders in India where less than 50% of credit eligible population is able to prove its creditworthiness and access credit.”
FinBox counts the likes of ZestMoney, Khatabook, TrueBalance, Home Credit India, IIFL, large conglomerates, telcos, banks, NBFCs, and other Fortune India 500 companies among its clients.
FinBox’s technology enables any digital platform (both fintech and non-fintech)to launch digital credit products such as BNPL, Personal loans, Working Capital loans, Invoice Financing, etc while its Data Products provide the requisite intelligence to make optimum credit decisions.